North Carolina Logistics Initiative Transportation Model

North Carolina Logistics Initiative Transportation Model East Carolina University Greenville, NC Professor Mark Angolia, Distribution and Logistics Program East Carolina University, Greenville, NC Dr. Richard Monroe, Distribution and Logistics Program East Carolina University, Greenville, NC Dr. Leslie Pagliari, Associate Dean, College of Technology and Computer Science East Carolina University, Greenville, NC

1. Intent and Purpose This section provides a percentage comparison estimate for rail mileage/cost and carbon footprint impact for transportation of equipment returning from overseas for reset and storage. 2. Background The Marine Corps returns material and equipment from overseas to Blount Island at the Port of Jacksonville, FL and then forwards freight to the Marine Corps Logistics Base (MCLB) in Albany, GA for reset and repair. Equipment can then be sent to prepositioning points or the base in Camp Lejeune, NC. The Army returns material and equipment from overseas to the Port of Charleston, SC and then forwards freight to in the Anniston Army Depot in Anniston, AL for reset and repair. Equipment can then be sent to pre-positioning points or the base in Ft. Bragg, NC. 3. Equipment Move Assumptions 3.1 All Army material is taken through the Port of Charleston, SC. 3.2 All Marine equipment is taken through the Port of Jacksonville, FL 3.3 Material is conveyed as Ro-Ro, bulk, or container shipments. 3.4 Rail movement is by flat car; motor carriage by full truckload quantities/rates 3.5 No intermodal moves are required. 3.6 Port and staging costs at each port studied would be approximately equal, and therefore do not impact the model and were not included. 3.7 Cost of transport for military equipment is rated using the Standard Transportation Commodity Code (STCC) 3548420 Military Freight. 4. Model Assumptions 4.1 Flat cars will vary from 60 70 feet in length 4.2 Flat car maximum load will vary from 85 100 tons 4.3 Rail costs are estimated based on 45 tons of freight per flat car based on vehicle configurations and size negatively impacting loading density and flat car weight capacity utilization. 4.4 Rail carrier switching fees = $250 per car 4.5 Price range based on 25 50 ton rate CSX rate and/or the Norfolk Southern mileage/rate estimator 4.6 CSX rail will be available from Castle Hayne, NC to Wallace, NC 4.7 Motor carriage based on 20 ton max cargo, not hazmat or oversize/overweight. 5. Model Limitations The model will only provide percentage of cost and carbon footprint reductions. 5.1 Publicly available rates are always negotiated to lower actual transportation costs. As actual costs cannot be obtained, the public rates are used to determine percentage of change at a fixed frame of reference 5.2 Carbon footprint is determined by mode of transport and weight carried. As actual tonnage of move is not available, fixed weights are used for comparison Page 2 of 19

NCLI Transportationn Model Transportation Model Overview Port of Entry Charleston, SC Jacksonville, FL Morehead City, NC Wilmington, NC Albany, GA Reset Facility Anniston, AL Kinston, NC Camp Lejeunee Military Location Ft. Bragg Transit distance o Rail miles are actual when using CSX from point to point o Rail miles are estimated for NS or local carriers based on highway miles approximately rail routings, which do not always follow shortest motor route o Motor mileage uses major highways and metro by-passes whenever possible Transit cost o CSX costs are rated on net cargo weight o NS costs are irrespective of net cargo weight o CSX Rail carriage rated using Standard Transportation Commercial Code (STCC) 3548420 Military Freight o Motor costs are rated using full truck load quantity rates Rail Carrier selection o Movements were based on most efficient logisticss distance and costs when alternative carriers were available o Rail switching locations were as defined using CSX to NS locations Current fuel surcharges o Based on data available as of October 2011. Rail Carrier transit time based on CSX 4Q2010 data o Average travel speed of 21 mph o Average terminal delay for AL/NC/ /GA switching points of 32 hours Motor Carrier travel time o Based on single driver hours of service of January 2011 11 hour maximum drive time after 10 consecutive off duty hours o Estimated average truck speed for southeast US of 55 mph Page 3 of 19

6. Carbon Calculations Both CSX and Norfolk Southern have carbon calculators based on freight weight and miles. Since the calculations are a constant based on miles, the percent reduction of carbon will be on a 1:1 relationship for any change in either rail or truck mileage. Mode of Transport Pounds of CO 2 per Ton-Mile Rail 0.054 Truck 0.198 http://www.nscorp.com/nscorphtml/future/carbon%20footprint0407-2.html http://www.csx.com/index.cfm/customers/tools/carbon-calculator/ Port Direct Rail Loading Port Capability Comparison Container Terminals Break Bulk Terminals Bulk Cargo http://www.port-of-charleston.com/charleston/inland/railconnections.asp http://www.jaxport.com/cargo/facilities/blount-island http://www.ncports.com/port_of_morehead_city_facilities.htm http://www.ncports.com/port_of_wilmington_facilities.htm Heavy Lift Cargo Charleston, SC CSX X X X X X Jacksonville, FL CSX X X X X X Morehead City, NC NS X X X X Wilmington, NC CSX X X X X RO- RO Military Contacts at CSX http://www.csx.com/index.cfm/customers/commodities/military/ Page 4 of 19

Rail Freight Analysis Methodology Publicly available tools are used to define distance and cost between the current ports of entry for the Army and Marines, with transportation to their respective east coast reset facilities and Ft. Bragg and Camp Lejeune in North Carolina. Alternatives are provided using Morehead City and Wilmington, NC for port of entry, with a centrally located reset facility in Kinston, NC. The rail model is based exclusively on movements by flat car for military freight with no intermodal moves. Costs are based upon rail transportation and switching costs using publicly available pricing from CSX Transportation and Norfolk Southern. Cost was developed using the CSX Price Look-Up tool, available for non-customer access. This tool provides cost per 100# at various cargo net weights and standard transportation carrier codes (STCC), for non-interline moves on CSX. The tool allows for point of origin and destination, providing rail mileage and fuel surcharge. The information was used as the basis for the CSX cost model data using a military freight STCC 3548420. The CSX Price Look-Up tool would not cost inter-line moves/through rates, i.e. moves that started on CSX and ended on a non CSX carrier. Therefore, costing was based on rail cost model rule 11, in which pricing is provided by each carrier as they move freight from point to point using their proprietary rail. The estimate used CSX direct price where available, and the NS table for subsequent point to point moves. In addition, a $250 fee was assessed for switch points when the carrier changed. For a comparison and model validity check, costs were also calculated using a Norfolk Southern (NS) rate table. This NS table showed rates for mileage ranges, for military freight transported on heavy duty flat cars. The table was for empty flat car moves, and as such was irrespective of cargo weight. To maintain model to model integrity, the car switching fee was included, as well as the CSX model fuel surcharge fees. The average rail car travels at approximately 21 miles per hour, after spending an average of 32 hours in a terminal waiting to be hooked up to a locomotive, to be hauled to another terminal, based on CSX performance reporting for Q4 2010. Rail car speeds are an average for all types of rail cars. Terminal transfer times are based on data available for Alabama, Georgia, and North Carolina. http://shipcsx.com/public/ec.shipcsxpublic/main?module=public.pricing http://www.nscorp.com/mktgpublic/publicprices http://www.railroadpm.org/ http://www.railroadpm.org/home/rpm/performance%20reports/csx.aspx Page 5 of 19

Rail Service Availability by Location Location Description CSX Norfolk Transportation Southern Other Morehead City, NC Port n/a Available Wilmington, NC Port Available n/a Army Reset Movements Charleston, SC Port Available Available Anniston, AL Reset Depot n/a Available Fort Bragg, NC Base Available 1 n/a Marine Corps Reset Movements Jacksonville, FL Port Available Available 2 Albany, GA Reset Depot n/a n/a 3 GFRR Camp Lejeune, NC Base n/a Available 4 CPLJ 1 CSX transfers to Cape Fear RR (CF) at Fayetteville, NC 2 CSX direct load at Blount Island, FL and transfers to NS in Jacksonville, FL 3 NS ends at Sparks, GA and transfers to Georgia Florida RR (GFRR) 4 NS ends at Havelock, NC and transfers to Camp Lejeune RR (CPLJ) Typical Equipment and Weights Vehicle Max GVW (tons) Length (feet) Per Rail Flat Car Total Tons LAV Light Armored Vehicle 14 22 3 42 MTVR MRAP Medium Tactical Vehicle Replacement Mine Resistant Ambush Vehicle 15 27 2 30 29 29 2 58 http://www.army-technology.com/projects/rg33-mrap/ http://www.oshkoshdefense.com/products/6/mtvr# Page 6 of 19

Army Reset Logistics: Option 1A Use Wilmington, NC as Port of Entry Transportation Route Charleston, SC Anniston, AL Ft. Bragg, NC Wilmington, NC Kinston, NC Ft. Bragg, NC Rail Miles CSX Cost Model NS Cost Model Total Transit Hours # of CO 2 885 $ 9,992 $ 6,385 106 2,151 297 $ 7,902 $ 3,972 78 722 Percent 66% 21% 38% 26% 66% The table above defines the baseline distance and costs for movements of a single train flat car carrying an estimated load of 45 short tons (90,000 #), for the entry at the Port of Charleston, SC and transport to Anniston, AL for reset. This would yield an approximate 66% reduction in rail miles and pounds of CO 2 from the baseline. Transit time is reduced by approximately 26%, and the corresponding cost reduction ranges between 21% for estimated point to point, and 38% for estimated through rate costing. The baseline freight movement from Charleston, SC was routed to Atlanta via CSX, and transferred to NS for the final movement into Anniston. The post-reset routing to Ft. Bragg was to Columbia, SC via NS, and then transfer to CSX. The comparison shows cargo coming into the Port of Wilmington, NC and moving directly by CSX rail to a reset facility in Kinston, NC and then to Fort Bragg. Army Reset Logistics: Option 2A Use Morehead City as Port of Entry Transportation Route Morehead City, NC Kinston, NC Fort Bragg, NC Rail Miles CSX Cost Model NS Cost Model Total Transit Hours # of CO 2 225 $ 5,431 $ 3,542 43 547 Percent 75% 46% 45% 60% 75% As an alternative, option 2A shows cargo coming into the Port of Morehead City, NC and moving to Kinston, NC via NS for reset. The post reset move to Fort Bragg is via NS and then CSX. This would yield an approximate 75% reduction in rail miles and pounds of CO 2 from the baseline. Transit time is reduced by approximately 60%, and the corresponding cost reduction ranges between 45% based on estimated through rate, and 46% for estimated point to point costing. Page 7 of 19

Marine Corps Reset Logistics: Option 1M Use Morehead City as Port of Entry Total Transportation Rail CSX NS Transit Route Miles Cost Model Cost Model Hours Jacksonville, FL Albany, GA Camp Lejeune, NC Morehead City, NC Kinston, NC Camp Lejeune, NC # of CO 2 908 $ 13,017 $ 7,291 171 2,206 154 $ 4,600 $ 3,174 39 374 Percent 83% 65% 56% 77% 83% The table above defines the baseline distance and costs for movements of a single train flat car carrying an estimated load of 45 short tons (90,000 #), for the entry at Blount Island at the Port of Jacksonville, FL and transport to the Marine Corps Logistics Base (MCLB) in Anniston, AL for reset. This would yield an approximate 83% reduction in rail miles and pounds of CO 2 from the baseline. Transit time is reduced by approximately 77%, and the corresponding cost reduction ranges between 56% based on estimated through rate, and 65% for estimated point to point costing. The baseline freight movement from Jacksonville, FL was routed to Georgia, southeast of Anniston, and transferred to the Georgia Florida Rail Road (GFRR), which services the Marine Corps Logistics Base (MCLB) from the south. The post-reset routing to Ft. Bragg was GFRR to a CSX line in Thomasville, GA for transit to Goldsboro, NC to NS, where it is conveyed by Havelock, and finally transferred to the Camp Lejeune Rail Road (CPLJ) for delivery. The comparison shows cargo coming into the Port of Morehead City, NC and moving by NS to Kinston, NC for reset. The post-reset routing is NS to Havelock, NC and transferring to CPLJ RR to Camp Lejeune. Marine Corps Reset Logistics: Option 2M Use Wilmington, NC as Port of Entry Total Transportation Rail CSX NS # of Transit Route Miles Cost Model Cost Model CO Hours 2 Wilmington, NC Kinston, NC 227 $ 7,072 $ 3,543 75 552 Camp Lejeune, NC Percent 75% 46% 51% 56% 75% As an alternative, option 2M shows cargo coming into the Port of Wilmington, NC and moving to Kinston, NC via a proposed link between Castle Hayne and Wallace, NC. Post reset move to Camp Lejeune is via CSX to Goldsboro, NS to Havelock, and CPLJ RR to Camp Lejeune. This would yield an approximate 75% reduction in rail miles and pounds of CO 2 from the baseline. Transit time is reduced by approximately 56%, and the corresponding cost reduction ranges between 46% for estimated point to point, and 51% for estimated through rate costing. Page 8 of 19

Additional Army Base Movements by Rail Transportation Miles Mileage To / From Port of Charleston Port of Wilmington Mileage Percent # of CO 2 / TL Ft. Drum, NY 1,633 996 637 39% 1,548 Ft. Campbell, KY 537 978 (441) (82%) (1,072) Ft. Stewart, GA 618 564 54 9% 131 Total Time in Transit Transit Time To / From Port of Charleston Port of Wilmington (hours) Percent Ft. Drum, NY 141 111 30 21% Ft. Campbell, KY 90 143 (53) (59%) Ft. Stewart, GA 125 123 3 2% Total Estimated Cost Estimated Cost Port of Port of Savings per Percent To / From Charleston Wilmington Rail Car Savings Ft. Drum, NY $10,802 $ 8,356 $ 2,446 23% Ft. Campbell, KY $ 7,831 $ 9,326 ($ 1,495) (19%) Ft. Stewart, GA $ 7,897 $ 7,860 $ 37 0% The above estimates compare movement of Army equipment from their baseline movement from the Port of Charleston, SC, to Anniston, Alabama and then on to three separate bases in Georgia, Kentucky, and New York. The Port of Wilmington was used as a baseline for comparison. The move to Ft. Drum, NY carried the most benefit, while the moves to Ft. Campbell and Ft. Steward do not represent an opportunity. Page 9 of 19

Truck Freight Analysis Methodology Motor carrier mileage and rates were based on legal loading and size movements of freight all kinds (FAK) shipments for current eastern seaboard and North Carolina port. A baseline using existing Army and Marine port of entry to existing reset facilities was created, and compared to a reset facility in Kinston, NC from a generic NC port to simplify the comparison. The generic NC port used an average distance of 80 miles from port reset in Kinston, NC. This was developed since the distance from the Port of Morehead City to Kinston is 71 miles, and Port of Wilmington to Kinston is 89 miles. The range of shipments, and average 80 mile distance, fall into a standard short haul (minimum) cost rate for full truck load moves. This allowed for a simplified estimating process. Actual mileage and costs estimates were obtained from a major 3PL company for movement of FAK from Jacksonville, FL, Charleston, SC and Wilmington, NC to all military installations in NC. These rates provided either an actual or a foundation to estimate other moves in the model. In addition, rates were determined using a publicly available tool for freight cost estimation. Mileage and costs from each source were compared and an average rate was developed using the two sources, with the exception of short haul fees within NC, in which case the 3PL actual rates were used. Transit time was calculated based on a single driver, which correlates to the cost estimate methodology. Using a single over the road driver, a motor carrier may only drive 11 hours, and then take a mandate rest period of 10 hours. Therefore, transit time in the model account for rest periods. Note that rest periods may be eliminated by two driver teams, but this is not used. The average speed for travel is 55 mph based on Department of Transportation data mph for the eastern US corridors relating to this study. The DOT buffer indexes for reliability were not factored in, which discounts late delivery due to unforeseen traffic delays. CO 2 estimates were developed for a standard 30,000 pound load, using the standard pounds per ton-mile estimator provided through Norfolk Southern rail road. http://www.globalshippingcosts.com/calc/index.php?type_cargo=land http://www.fmcsa.dot.gov/rules-regulations/topics/hos/index.htm http://www.ops.fhwa.dot.gov/freight/freight_analysis/perform_meas/fpmtraveltime/ http://www.ops.fhwa.dot.gov/freight/freight_analysis/state_info/north_carolina/nc.htm Page 10 of 19

Army Motor Carriage Analysis Transportation Miles Mileage Port of NC Port Mileage Percent # of CO 2 To / From Charleston of Entry / TL Ft. Bragg, NC 890 169 721 81% 2,141 Ft. Drum, NY 1,514 823 691 46% 2,052 Ft. Campbell, KY 705 755 (50) (7%) (149) Ft. Stewart, GA 747 456 291 39% 864 Total Time in Transit Transit Time Port of NC Port Percent To / From Charleston of Entry (hours) Ft. Bragg, NC 26.2 3.1 23.1 88% Ft. Drum, NY 47.5 25.0 22.6 47% Ft. Campbell, KY 22.8 23.7 (0.9) (4%) Ft. Stewart, GA 23.6 8.3 15.3 65% Total Estimated Cost Estimated Cost Port of NC Port Savings per Percent To / From Charleston of Entry Truck Load Savings Ft. Bragg, NC $ 3,340 $ 846 $ 2,494 75% Ft. Drum, NY $ 5,525 $ 3,141 $ 2,384 43% Ft. Campbell, KY $ 2,529 $ 2,869 $ (341) (13%) Ft. Stewart, GA $ 2,653 $ 1,836 $ 817 31% The tables above compare baseline distance and cost for legal loading weight truck transportation for Army equipment. The comparison is between port of entry at Charleston, SC to the current reset facility in Anniston, AL, and port of entry in North Carolina to a reset facility in Kinston, NC. Mileage and cost is then added to each Army base from the respective reset facilities. The largest improvement is to Ft. Bragg, NC with an approximate 81% reduction in truck miles and pounds of CO 2 from the baseline. The corresponding transit time reduction is approximately 88%, with an approximate 75% cost reduction, based on full truckload pricing. The moves to Ft. Drum, NY and Ft. Stewart, GA carried the most benefit, while the move to Ft. Campbell, KY does not represent an opportunity. Page 11 of 19

Transportation Miles Mileage Port of To / From Jacksonville Camp Lejeune, NC Marine Corps Motor Carriage Analysis NC Port of Entry Mileage Percent # of CO 2 / TL 760 132 628 83% 1,865 Total Time in Transit Transit Time To / From Port of NC Port Jacksonville of Entry (hours) Camp Lejeune, NC 23.8 2.4 21.4 90% Percent Total Estimated Cost Estimated Cost To / From Port of NC Port Savings Jacksonville of Entry per TL Camp Lejeune, NC $ 2,739 $ 774 $ 1,965 72% Percent The tables above compare baseline distance and cost for legal loading weight truck transportation for Marine equipment. The comparison is between port of entry at Jacksonville, FL to the current reset facility in Albany, GA, and port of entry in North Carolina to a reset facility in Kinston, NC. Mileage and cost is then added to provide transportation to Camp Lejeune. From the baseline, there is an approximate 83% reduction in truck miles and pounds of CO 2 from the baseline. The corresponding transit time reduction is approximately 90%, with a cost reduction of approximately 72%, based on full truckload pricing. Page 12 of 19

Travel Time: Reset Facility to Military Location Army Motor Transit Time Comparison: Reset to Military Location To / From Anniston, AL (hours) Kinston, NC (hours) Hours Percent Ft. Bragg, NC 8.6 1.6 7.0 81% Ft. Drum, NY 29.9 23.5 6.4 21% Ft. Campbell, KY 5.2 22.3 (17.1) (327%) Ft. Stewart, GA 6.0 6.8 (0.9) (14%) Army Rail Transit Time Comparison: Reset to Military Location To / From Anniston, AL (hours) Kinston, NC (hours) Hours Percent Ft. Bragg, NC 55.3 39.3 16.0 29% Ft. Drum, NY 90.9 73.9 17.0 19% Ft. Campbell, KY 47.8 105.0 (57.2) (120%) Ft. Stewart, GA 83.6 85.3 (1.7) (2%) Marine Corps Transit Time Comparison: Reset to Military Location Mode Transit Time To / From Albany, GA (hours) Kinston, NC (hours) (hours) Percent Motor Camp Lejeune, NC 9.7 0.9 8.8 90% Rail Camp Lejeune, NC 129.1 37.2 91.9 71% The above tables summarize the transit times from the reset facilities to their associated military destinations. The tables can be used for comparison along with the total transit times to determine where the largest net benefit is derived. Moves originating and ending within North Carolina show the most benefits it both total and post reset transit time. The next most beneficial is the movement to Ft. Drum, NY based on its northern US location. The benefit for servicing Ft. Stewart, GA is primarily the reduction for movement from port of entry to reset. The baseline post reset distance/transit times are approximately the same as a Kinston, NC reset and transit to Ft. Stewart, GA. The total transit distance/time to Ft. Campbell, KY is essentially the same, but post reset movement from NC is extremely disadvantaged due to the proximity of Anniston, Al to Ft. Campbell, KY. Page 13 of 19

NCLI Transportationn Model http://www.bytrain.org/quicklinks/pdf/nc_railmap_10.pdf Page 14 of 19

NCLI Transportationn Model http:/ //sccommerce.com/sites/default/files/document_directory/rail_plan_- _South_Carolina_State_Rail_Plan_2008_Part_3_Existing_System_Wilbur_Smith_Assoc iates 2009.pdf Page 15 of 19

NCLI Transportationn Model http://www.dot.state.ga.us/maps/documents/railroad/georgia_rail_map_2004.pdf Page 16 of 19

NCLI Transportationn Model http://www.dot.state.fl.us/rail/publications.shtm Page 17 of 19

http://www.dot.state.al.us/images/railmapf.pdf Page 18 of 19

CSX to Norfolk Southern Switching Points by State AL Autauga Creek FL Edgewood GA Atlanta AL Autauga Dtc FL Grand Junction Os GA Augusta AL Bell Street FL Jacksonvil Acorn St GA Augusta Aei 02 AL Bessemer FL Jacksonvil Moncrief GA Augusta Yard Cp AL Birmingham FL Jacksonville GA Augusta Yard Limite AL Birmingham TOFC FL Jacksonville Fec GA Broad Street Dtc AL Caictf FL Jacksonville TOFC GA Brunswick AL Calera FL Jacksonvl Market St GA Cordele AL Coosa Pines FL Lake City GA Gainesville AL Decatur GA Harrisonville AL Ensley GA Jesup AL Lemoyne GA Madison AL Mobile GA Old Yard AL Montgomery GA Savannah AL Montgomery TOFC GA South Jesup AL Opelika GA Valdosta AL Sibert Os AL South Birmingham AL Stevenson NC Charl TOFC SC Berkeley VA Franklin NC Charlotte SC Catawba VA Franklin Dd NC Durham SC Charleston VA Glasgow NC Fayetteville SC Charleston Coop Yd VA Hopewell NC Goldsboro SC Charleston TOFC VA Lynchburg NC Greenville SC Columbia VA Norfolk NC High Point SC Giant VA Petersburg NC Lee Creek SC Newberry VA Portsmouth TOFC NC Lexington SC Orangeburg VA Richmond NC North Wilson SC Spartanburg VA Richmond Acca NC Raleigh SC Spartanburg Wye Cp VA Richmond Fulton NC Selma VA Richmond TDSI NC Wadesboro VA Richmond TOFC NC Wilson VA Suffolk NC Winston Salem VA Waynesboro Page 19 of 19